Real estate stocks gain after RBI allows banks to invest in REITs

Major realty firms gain between 1 and 6 percent on the back of the central bank’s decision to allow lenders to invest in REITs and InvITs

Shares of real estate companies witnessed a surge as investors cheered the central bank’s decision on REITs.

The Reserve Bank of India (RBI) on Thursday allowed banks to invest in real estate investment trusts (REITs) as well as infrastructure investment trusts (InvITs).

A REIT is a special form of corporation that invests primarily in real estate. REITs do not pay federal income taxes as long as they pay out 90% of their earnings to shareholders in the form of dividends.

As a result, DLF, Prestige Estates, Unitech, and Godrej Properties, among others surged between 1 and 6 percent intraday. A few of them even clocked their 52-week highs.

At 14:45 hrs, real estate major DLF was quoting at Rs 156.65, up Rs 6.95, or 4.64 percent on the BSE.

Meanwhile, Prestige Estates Projects was quoting at Rs 230.25, up 3 percent.

Sobha, on the other hand, was quoting at Rs 406.35, up Rs 6.50, or 1.63 percent. It touched a 52-week high of Rs 417.00. Meanwhile, Unitech was quoting at Rs 6.06, up Rs 0.21, or 3.59 percent.

Godrej Properties too clocked 52-week high of Rs 452.2, up 2.14 percent.

Source : Moneycontrol News

Mahagun Group receives Completion Certificate for its Greater Noida West project

GREATER NOIDA: Real estate developer Mahagun Group has received Completion Certificate for the first phase of its Greater Noida West project, namely Mahagun Mywoods.

The builder has received Completion Certificate for a total of about 1,800 units.

“With possession numbers increasing, the region of Greater Noida West will soon be evolved into a complete habitat. With possessions started in our project, we expect the homeowners to give their acceptance by mid and end of this month and see them shift to their new abodes”, said Dhiraj Jain, Director of Mahagun Group.

The entire project is spread across approximately 60 acres of land and will involve two more phases before completion.

Source : ETRealty

7 Tips On How To Invest In Property

You must have made several mistakes while investing in Real estate. Estate Science knows all these things and hence has given  tips for having a great real estate experience: 

 Personal finances must be set up properly before making investments

First of all get your own house and then buy more! Have a clear picture of the outstanding loans, expenses and existing income. If you don’t have an idea, spend couple of months in tracking things on which money is spent. If more cash is freed up for investments, substantial savings can be made.

The real estate goals must be written down.

Before visiting the property, take a pen and paper and think very carefully about what has to be achieved from real estate market. Have a clear idea of what your budget is and also the duration for which you want money to be tied up for. Determine the risk you can take easily.

7 Tips On How To Invest In Property

Common sense must be used and some time should be spent in studying

If common sense is applied and if some specific time is set aside for researching a deal, then there is a fair chance of expensive mistakes being avoided. Majority of the time, when money is lost on real estate investment, the major reason is either the homework isn’t done properly or either the home is purchased in a hurry. Enough time must be spent on basic activities.

Don’t hurry up into a deal which looks very ‘Lucrative’

If a property deal seems to be extremely amazing, a deep breath should be taken for figuring out what is not being seen. Probably, once in 10 times, a great deal will be found and you might get it first. There are times when others see it more often and often pass it on for some or the other reason. Usually, the best deals are boring ones and not perfect ones.

Local neighborhood must be studied

This is extremely essential. Use a website like Estate Sciences which gives you A to z information about everything. It would offer lot of business and housing information. Apart from that, it would also offer sales and rental comparisons.

Don’t purchase the property without making a persona visit.

Real diligence involves lot of research. However, walking down to the property yourself makes a great difference. There are several realtors and agents who provide accurate feedback on various locations. However, gut instinct must also be used for the locations and types you are comfortable with.

Bottom line is that matters

All the overhead costs associated with the property must be considered. This includes income tax, vacancies, repairs, property management, property tax, insurance and maintenance fees.